New Mexico overhauling state insurance regulation

SANTA FE — As New Mexico prepares to enroll tens of thousands of people into health plans, the state is revamping the government regulator that oversees insurance prices and policies.

Under a constitutional change approved by voters this month, the regulation of insurance companies will no longer be a responsibility of the five-member elected Public Regulation Commission. Instead there will be an appointed regulator who will run the independent Office of the Superintendent of Insurance starting next July.

The changes are part of the most significant regulatory overhaul since the PRC was created by a 1996 constitutional amendment merging two regulatory agencies. If that wasn't enough, the regulatory restructure comes as New Mexico and other states grapple with health insurance reforms required by a 2010 federal law.

It's the job of the Legislature early next year to decide details of the new regulatory system. Lawmakers will determine the membership of a commission that appoints the insurance superintendent and legislators must establish the qualifications for who serves as the top insurance regulator.

"The governor and Legislature are going to have to come together on this because the governor has the veto. They'll have to work together with us to develop a bill that works for everyone," said Fred Nathan, executive director of Think New Mexico, a think tank that was a driving force behind the voter-approved proposal for an independent insurance regulator.

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The group plans to offer regulatory legislation next year and intends to work with consumer groups and the insurance industry to try to develop a bipartisan measure.